The media published information according to which Singapore-based payment startup Airwallex intends to expand into lending.
To achieve the mentioned goal, the company plans to acquire banking licenses in the United States and the United Kingdom. This was stated by Airwallex chief executive officer Jack Zhang during a conversation with media representatives. According to him, the company plans to apply for a banking license in the United Kingdom. In the relevant context, he separately noted that the UK is one of the friendliest markets for fintech brands. Jack Zhang also stated that the Financial Conduct Authority is still one of the best regulators.
Moreover, the head of the company noted that it is much more difficult to become a regulated bank in the United States. According to him, this is due to the large number of state licenses and regulators. As noted by the media, the mentioned statement means that the company is likely to try to win regulatory approval by acquiring a US bank.
Airwallex currently has its headquarters in Singapore. At the same time, the company was founded in Australia ten years ago. Airwallex offers global brands worldwide banking services and multi-currency payments.
According to media reports, within the framework of the company’s traditional practice of existence as a business structure operating in the fintech area, a kind of specificity has emerged that provides for growth dependent on payment licenses. Currently, Airwallex is striving to expand into lending. The company is also piloting a credit card in Australia.
Jack Zhang stated that any product that the global bank has, Airwallex will have. He also thinks that Airwallex will eventually displace some global financial institutions in ten years.
Moreover, the media published information according to which the company plans to go public. At the same time, it is worth noting that Jack Zhang ruled out the idea of holding an initial public offering (IPO) of shares in the United Kingdom. According to him, the United States market is still the most accessible and most liquid capital market in the world.
It’s worth mentioning that last year Jack Zhang projected that Airwallex would be ready for an IPO by 2026. The company is valued at $5.5 billion. It is still unclear what impact the current global economic situation, complicated by the incipient trade war, will have on Airwallex’s IPO plans. In this context, it is worth noting that companies such as Klarna put their corresponding plans on hold against the background of the present economic realities.
Airwallex demonstrates a rapid pace of development in Asia, Europe, and North America. The brand’s platform allows companies to open accounts worldwide, process payments in multiple currencies, and manage international financial operations from a single dashboard. At the same time, the current regulatory status of Airwallex limits its ability to offer credit services at scale. Obtaining banking licenses will allow the company to overcome the mentioned limitations.
As we have reported earlier, Airwallex and Vistra to Empower Borderless Business Scaling.
